Euroclear reported a first-quarter update this week, revealing a 10% year-on-year rise in underlying business income, reaching a record €466 million.
Euroclear Business Income Rises 10% in Q1
According to the firm, the solid performance was driven by increased settlement activity, fixed income issuance, and higher equity valuations amid market volatility.
It also helped offset a 10% decline in interest and banking income, which fell to €255 million due to a lower interest rate environment. Increased cash balances partly cushioned the impact.
Operating leverage improved, with Euroclear’s business income operating margin rising to 27.1%, up from 23.4% in the same period last year. Adjusted net profit slipped 1% to €283 million, while adjusted earnings per share held steady at €90.
Chief Executive Officer Valérie Urbain said: “We have made a strong start to 2025, reporting a 10% increase in business income driven by robust growth in safekeeping fees and settlement income, offsetting the anticipated decrease in interest income.”
Assets under custody surpassed €41 trillion, while turnover rose 23%. Euroclear also reported growth in its Collateral Highway, which exceeded €2 trillion, and funds depot, approaching €3.6 trillion.
“We continue to closely monitor the impact of tariffs imposed by the US administration announced in early April, but the immediate direct impact on our business so far remains limited,” added Urbain.
